| Q: |
What happened to the QQQ listing on the Amex? |
| A: |
Nasdaq, which is the parent company of the sponsor of the Nasdaq-100 Trust, Series 1 (the "Trust"), and the American Stock Exchange mutually agreed to amend the terms of the original agreement that provided for the listing of the Trust on the Amex, to allow the transfer of the listing to the Nasdaq National Market.
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| Q: |
When did the change in listing venue take place? |
| A: |
The Trust's shares began listing on the Nasdaq Stock Market on December 1, 2004.
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| Q: |
Was there a change to the Trust's shares trading symbol? |
| A: |
Yes. The trading symbol for the Trust's shares changed from QQQ to QQQQ on December 1, 2004.
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| Q: |
Was there a change to the Trust's options trading symbol? |
| A: |
No. The trading symbol for the Trust's options remain QQQ.
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| Q: |
Were there any significant changes to the Trust or its prospectus? |
| A: |
No. The essential information in the prospectus and the details of the Trust are the same. For a prospectus call 888-627-3837.
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| Q: |
Does the Amex continue to trade shares of the Trust on its floor? |
| A: |
Yes. The Amex trades shares of QQQQ on an unlisted trading privileges (UTP) basis.
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| Q: |
Where is QQQQ located on the Amex floor? |
| A: |
The product continues to trade on the Mezzanine.
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| Q: |
Are there market makers in the QQQQ crowd? |
| A: |
As in the past, the Amex permits market makers to trade in the ETF crowds.
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| Q: |
How can I access the Amex QQQQ market? |
| A: |
There are no changes in accessing the Amex QQQQ market. As in the past, the Amex market can be accessed either electronically through the Common Message Switch (CMS) or through floor brokers.
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| Q: |
Are there any technical changes to my routing set-up that my firm needs to make in order to direct orders electronically to the Amex? |
| A: |
Orders in QQQQ continue to route through CMS to the Amex Order File (AOF), but member firms must have Line 1A of the CMS format properly coded with an "AM" designation. Because the Amex is no longer the primary listing exchange for the Trust's shares, leaving Line 1A blank no longer results in default transmission of QQQQ orders to the Amex.
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| Q: |
Is there Intermarket Trading System (ITS) for QQQQ? |
| A: |
No. QQQQ will trade like other Nasdaq-listed securities with neither the ITS linkage nor the trade-through rule. Nevertheless, broker/dealers must still fulfill their best-execution obligations. However, pursuant to the Amex Nasdaq UTP Plan, the SEC mandated that market center participants to the Plan allow telephonic access to other market centers. As a result, the Amex QQQQ market may also be reached telephonically by calling the specialist directly, if the required procedures are followed. For more information on this issue and procedures, see the Amex UTP Technology section.
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| Q: |
What happens to good-till-cancelled (GTC) orders on the Amex book? |
| A: |
As of December 1, 2004, all Nasdaq-100 Index Tracking Stock GTC orders must reflect the change in the ticker symbol to QQQQ.
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| Q: |
What are the fees associated with trading QQQQ on the Amex as a UTP security? |
| A: |
For the month of December, the Amex has suspended its fees to all market participants for trades in QQQQ.
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| Q: |
Is there automatic execution functionality for QQQQ on the Amex? |
| A: |
The Amex deployed its NETS 3 automatic execution functionality for its QQQQ trading. This enhancement enables market participants to execute orders quickly and efficiently. For more information, see Amex NETS 3 Automatic Execution System.
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| Q: |
What are the new trading hours? |
| A: |
The "primary" market in QQQQ (i.e., Nasdaq) closes at 4:00 p.m., and the regular trading session of the Amex has followed suit. The Amex, however, conducts an extended trading hours session from 4:00 p.m. to 4:15 p.m., during which time the specialist as well as any Amex market maker signed onto the auto-ex wheel are required to maintain a fair and orderly two-sided auction market. Because trading on the Amex from 4:00 p.m. to 4:15 p.m. is under extended trading hours, the "official" Amex close is at 4:00 p.m. for purposes of reporting to the Nasdaq tape.
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| Q: |
Are there any changes to the way specific order types are handled after the transfer? |
| A: |
"Day" orders are in force until 4:15 p.m., as they were in listed Portfolio Depositary Receipts before the transfer. In addition, "sell plus" and "buy minus" orders continue to be treated as they were before the transfer and use the previous Amex last different regular way trade to determine eligible price for execution. Immediate or cancel (IOC) orders sent to the order book electronically are automatically executed in whole or in part, and the portion not executed by auto-ex is cancelled automatically. A fill or kill (FOK) order sent to the order book electronically is automatically executed in its entirety, otherwise it will be cancelled automatically. The Amex accepts market cash close (MCC), market on close (MOC), and limit on close (LOC) orders for the 4:00 p.m. close.
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